Abbreviated Management Summaries arising from Final Audit Reports
Appendix B(1)
Report No. NN/12/01 – Final Report issued 28 July 2011
Audit Report on Coastal Change and Pathfinder Management
Audit Opinion
Good Assurance awarded
Rationale supporting award of opinion
The audit work carried out by Internal Audit indicated that:
•
There is a sound system of internal control designed to achieve the client’s
objectives.
•
The control processes tested are being consistently applied.
•
The level of assurance is based on the fact that no recommendations have been
raised.
•
A review of Foreshore and Coastal Management (NN0902) was completed in
November 2008, although since the previous audit excluded the Pathfinder
programme no direction of travel indicator has been given.
Summary of Findings
Strategy and Governance
The Pathfinder Programme supports the Council’s corporate objectives with regards to
coastal management, in line with the Corporate Strategy and core planning policies EN11 and
EN12. Initiatives were presented within the initial bid to Department for Environment, Food
and Rural Affairs (DEFRA) in line with the overall scheme objectives.
Roles and responsibilities have been defined both at a programme and initiative level. Senior
management is kept informed of progress with all developments. Key decisions are made
through the Project Board, delegated authority and Cabinet/Council approvals. Stakeholder
engagement occurs at all stages of the project.
Funding and Financial Management
Budgets are monitored through the frequent Project Board meetings with variations agreed
and approved by the Project Board.
An approved Corporate Disposals and Acquisitions Policy is in place, having been
established to accompany this project. The Project Board has been empowered with
delegated authority to procure goods and services in line with funding provided to the Council
for administering the programme. Allocation and monitoring of funding is transparent and in
line with agreed procedures.
Contract Letting and Project Management
Contracts tested were let in line with the Council’s Financial Regulations and through
delegated authority.
Agreements and specifications exist to help ensure the effective operation of contracts, which
are monitored ensuring objectives are achieved. Payments are approved and promptly
processed once deliverables have been confirmed. Additional works by contractors are
approved by the Project Team.
Controls exist over the purchase of residential properties for buy to relocate initiatives.
Advisors are utilised to provide valuations on properties with the objectives of gaining value
for money on properties whilst providing an attractive offer to the resident. Member approval
is gained prior to the purchase of these properties.
Performance Information
Performance targets have not been put in place for the overall programme or its initiatives.
However, objectives have been set down for both the overall programme and individual
schemes. These are used to benchmark performance.
Data collection arrangements are in place for the monitoring of the funding allocations and
expenditure.
Performance is monitored by the Project Board through their frequent meetings when updates
are provided of the schemes in progress. Quarterly progress reports are provided to DEFRA.
Risk Management
Risk assessments have been carried out for the programme and individual schemes to
support project methodology. Programme risks are monitored by the Project Board.
Recommendations
No recommendations have been raised as a result of our audit. In all areas reviewed,
controls were deemed to be both adequate and effective.
Appendix B(2)
Report No. NN/12/02 – Final Report issued 3 August 2011
Audit Report on Affordable Housing
Audit Opinion
Good Assurance awarded
Rationale supporting award of opinion
The audit work carried out by Internal Audit indicated that:
•
There is a sound system of internal control designed to achieve the client’s
objectives.
•
The control processes tested are being consistently applied.
•
This level of assurance is based on the fact that we have raised one low priority
recommendation.
•
The previous report of Affordable Housing (NN0908), issued in January 2009,
was issued ‘Adequate Assurance’ as a result of us having raised one medium
and one low priority recommendation. Hence, the direction of travel shows an
improvement since the last review.
Summary of Findings
Affordable Housing
Policies are in place in respect of the affordable housing system operating within the Council.
The Housing Strategy is currently under review with a deadline for approval and subsequent
adoption in September 2011.
The capital budget for 2011/12 has been agreed and formally approved.
Monitoring of registered providers occurs informally on a day-to-day basis (including
discussion regarding affordable rent provision) and progress with affordable housing activity is
reported to senior management and members. Expenditure is monitored against the budget.
Legal agreements exist to secure the Council’s rights to nomination. However, at the time of
the audit, the nomination agreement for one development (Little Snoring) had not been
finalised and signed by all relevant parties despite the development having already been
completed. In addition, we noted that there is no routine monitoring of requests submitted to
Legal Services for the production of nomination agreements to ensure they are progressed in
a timely manner.
Performance Information
No issues were found with regards the reporting of performance.
Risk Management
Provision has been made for affordable housing in the corporate risk register as appropriate.
This is monitored through the Council’s risk management process.
Recommendations
The following number of recommendations has been raised:
Area of
Adequacy
Effectiveness
Adequacy
Scope
of
of Controls
and
Controls
Effectiveness
Assessments
Affordable
Green
Amber
Housing
Performance
Information
Risk
Management
Total
Recommendations
Raised
High
0
Medium
0
Low
1
Green
Green
0
0
0
Green
Green
0
0
0
0
0
1
We have not raised any high priority recommendations as a result of this audit. Management
have agreed the one recommendation raised.